I received a settlement (Fair Fund Distribution) from Valic for breaching its fiduciary duty to its clients. The 403k account has been closed for almost 5 years and I am over 60 years old now. The total distribution is $650, $100 was remediation-interest and $550 was remediation principal. The settlement noted that distributions amounts with an interest component less than $600 will not receive any tax form. I can create a 1099-int for the interest portion. For the remediation principal. I am willing to treat the entire amount as regular income, but without a tax form how do I enter this into turbotax and where would I get the necessary information?
All of it can be reported as one amount since it is all taxed the same.
Follow these directions :
The income will be reported on Schedule 1 line 8 with the description that you entered.
I have already entered the interest portion in the 1099-int section and then the principle in the Other Taxable Income section you mentioned. Will this work or should I have entered the total amount in Other Table Income section.
I seems that both methods would yield the same resulting taxes. However, I am not sure if my way would add any confusion?